Texas 2025 - 89th Regular

Texas House Bill HB4820 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Lopez of Cameron H.B. No. 4820
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the issuance of obligations by certain water districts
7	9		bordering the Gulf of America and an international border during a
8	10		disaster declaration.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 49.153, Water Code, is amended by
11	13		amending Subsections (c) and (e), and adding subsections (f), (g)
12	14		and (h) to read as follows:
13	15		(c) Except as provided by Subsection (e) and (f), a district
14	16		may not execute a note for a term longer than three years unless the
15	17		commission issues an order approving the note.
16	18		(d) This section does not apply to special water
17	19		authorities.
18	20		(e) Subsection (c) does not apply to:
19	21		(1) a note issued to and approved by:
20	22		(A) the Farmers Home Administration;
21	23		(B) the United States Department of Agriculture;
22	24		(C) the Texas Water Development Board;
23	25		(D) the North American Development Bank; or
24	26		(E) a federally chartered instrumentality of the
25	27		United States authorized under 12 U.S.C. Section 2128(f) to provide
26	28		financing for water and waste disposal facilities, provided that
27	29		the district that executes the note is located wholly in a county
28	30		that:
29	31		(i) does not contain a municipality that
30	32		has a population of more than 750,000; and
31	33		(ii) is not adjacent to a county described
32	34		by Subparagraph (i); or
33	35		(2) a district described by Section 49.181(h).; or
34	36		(3) a district entirely within a county bordering both
35	37		the Gulf of America and an international border subject to the
36	38		requirements of subsection (f).
37	39		(f) Notwithstanding any other law or limitations provided
38	40		in this Section, a district described in subsection (e)(3) may
39	41		issue notes during or prior to a disaster pursuant to the terms of a
40	42		note authorization provided that a certified copy of the note
41	43		authorization and all proceedings related to the issuance of notes
42	44		have been sent to the attorney general for approval in accordance
43	45		with Section 49.184. If a disaster declaration is made, a district
44	46		described in subsection (e)(3) may issue notes pursuant to this
45	47		Section beginning on the date of the disaster declaration and
46	48		continuing for the duration specified in the note authorization or
47	49		until the disaster declaration expires, whichever is later. Any
48	50		notes issued pursuant to this Section shall be incontestable in any
49	51		court or other forum, for any reason, and shall be valid and binding
50	52		obligations in accordance with their terms for all purposes.
51	53		(g) For purposes of this Section, the term note shall
52	54		include commercial paper notes if the terms of such notes meet the
53	55		requirements of Section 2256.013(1), Government Code.
54	56		(h) For purposes of this Section "disaster declaration"
55	57		means declaration of a state of disaster or emergency made by the
56	58		president of the United States for the state or any portion of the
57	59		district's territory, or a declaration of a state of disaster is
58	60		made pursuant to Chapter 418, Government Code, for the entire state
59	61		or any portion of the district's territory, and any amendment,
60	62		modification, or extension of the declaration.
61	63		SECTION 3. Section 49.154, Water Code, is amended by
62	64		amending Subsection (d) to read as follows:
63	65		(d) Except for instances in which a disaster declaration as
64	66		described by 49.153(h) is in effect,Ddistricts required to seek
65	67		commission approval of bonds must have an application for such
66	68		approval on file with the commission prior to the issuance of bond
67	69		anticipation notes or tax anticipation notes. If a disaster
68	70		declaration is made, a district described in 49.153(e)(3) may issue
69	71		bond anticipation notes or tax anticipation notes as described by
70	72		subsection (b) beginning on the date of the disaster declaration
71	73		and continuing for the duration of the disaster declaration.
72	74		SECTION 4. Section 49.181, Water Code, is amended by
73	75		amending Subsection (h) to read as follows:
74	76		(h) This section does not apply to:
75	77		(1) a district if:
76	78		(A) the district's boundaries include one entire
77	79		county;
78	80		(B) the district was created by a special Act of
79	81		the legislature and:
80	82		(i) the district is located entirely within
81	83		one county;
82	84		(ii) the district is located entirely
83	85		within one or more home-rule municipalities;
84	86		(iii) the total taxable value of the real
85	87		property and improvements to the real property zoned by one or more
86	88		home-rule municipalities for residential purposes and located
87	89		within the district does not exceed 25 percent of the total taxable
88	90		value of all taxable property in the district, as shown by the most
89	91		recent certified appraisal tax roll prepared by the appraisal
90	92		district for the county; and
91	93		(iv) the district was not required by law to
92	94		obtain commission approval of its bonds before the effective date
93	95		of this section;
94	96		(C) the district is a special water authority;
95	97		(D) the district is governed by a board of
96	98		directors appointed in whole or in part by the governor, a state
97	99		agency, or the governing body or chief elected official of a
98	100		municipality or county and does not provide, or propose to provide,
99	101		water, sewer, drainage, reclamation, or flood control services to
100	102		residential retail or commercial customers as its principal
101	103		function;
102	104		(E) the district on September 1, 2003:
103	105		(i) is a municipal utility district that
104	106		includes territory in only two counties;
105	107		(ii) has outstanding long-term
106	108		indebtedness that is rated BBB or better by a nationally recognized
107	109		rating agency for municipal securities; and
108	110		(iii) has at least 5,000 active water
109	111		connections; or
110	112		(F) the district:
111	113		(i) is a conservation and reclamation
112	114		district created under Section 59, Article XVI, Texas Constitution,
113	115		that includes territory in at least three counties; and
114	116		(ii) has the rights, powers, privileges,
115	117		and functions applicable to a river authority under Chapter 30; or
116	118		(G) the district is a district described by
117	119		49.153(e)(3) if:
118	120		(i) a declaration of a state of disaster or
119	121		emergency, and any amendment, modification, or extension of said
120	122		declaration, made by the president of the United States for the
121	123		state or any portion of the district's territory, is in effect; or
122	124		(ii) a declaration of a state of disaster,
123	125		and any amendment, modification, or extension of said declaration,
124	126		made pursuant to Chapter 418, Government Code, for the entire state
125	127		or any portion of the district's territory, is in effect.
126	128		(2) a public utility agency created under Chapter 572,
127	129		Local Government Code, any of the public entities participating in
128	130		which are districts if at least one of those districts is a district
129	131		described by Subdivision (1)(E).
130	132		SECTION 5. This Act takes effect immediately if it receives
131	133		a vote of two-thirds of all the members elected to each house, as
132	134		provided by Section 39, Article III, Texas Constitution. If this
133	135		Act does not receive the necessary vote, this Act takes effect
134	136		September 1, 2025.